Our Services
Escrow Agent
Escrow Agent
Making a very large purchase, such as a house, causes buyers, sellers, and lenders to seek reassurance about all the security measures that are in place to protect the funds involved in the closing transaction. Transferring large sums of money and finalizing the details of your sale needs to be done safely and in compliance with the latest security and privacy standards. To help minimize risks during real estate transactions, the escrow/settlement process was developed to protect the buyer, seller, and lender.
An escrow account is basically a temporary pass-through account held by the escrow holder. The escrow holder is a neutral third party that holds funds and related documents in a secure manner while the parties work through the details of the real estate transaction. Escrow ensures the conditions of the real estate transaction have been met before the property and/or money change hands.
Buyer Representation
Buyer Representation
A smart buyer will have an independent representative looking out for their interests. Buyer representation entails communicating with the seller’s designated closing agent throughout the transaction. It also includes the provision of review and explanatory services related to the contract both before and after signing as well as a review of all title, closing, and financial documents.
Undetected errors in the title and oversights in document review can result in overcharges to the buyer and, in some cases, title defects that can threaten the buyer’s ownership interest in the property. We get closely involved to be sure that our buyers are treated properly throughout the closing process and get clear title.
Seller Representation
Seller Representation
A smart seller will have an independent representative looking out for their interests. Seller representation entails communicating with the Buyer’s designated closing agent throughout the transaction. It also includes the provision of review and advisory services related to the contract both before and after signing as well as a review of all title, closing, and financial documents.
Undetected errors in the title, contract, and closing statement can result in overcharges to the Seller and, in some cases, legal action. We get closely involved to be sure that our Sellers are treated properly throughout the closing process and after. Available services include:
- Preparing all seller’s documents
- Conducting a real estate contract review
- Securing payoff letters
- Obtaining documentation that shows liens and judgments are cleared
- Providing additional backup information required to complete the closing
- During the closing, we will remain by your side, reviewing the agreements and explaining their provisions in understandable terms.
We take the long view when advising you of your options because we know that this transaction affects your financial well-being years after you sell your property.
Title Insurance for Buyers and Lenders
Title Insurance for Buyers and Lenders
To put it simply, title insurance is a way to protect yourself from financial loss and related legal expenses in the event there is a defect in the title to your property that is covered by the policy. Title insurance differs from other types of insurance in that it focuses on risk prevention, rather than risk assumption. With title insurance, title examiners review the history of your property and seek to eliminate title issues before the purchase occurs. Title insurance also differs in that it comes with no monthly payment. It’s just a one-time premium paid at closing.
What Does Title Insurance Cover? Any number of title issues may arise, even after the most meticulous search of public records. These hidden defects are dangerous because you might not learn about them for months, or even years, after purchase. Some common examples of risks covered by your Owner’s Policy include defects in title caused by:
- Improper execution of documents
- Mistakes in recording or indexing legal documents
- Forgeries and fraud
- Undisclosed or missing heirs
- Unpaid taxes and assessments
- Unpaid judgments and liens
- Unreleased mortgages
- Mental incompetence of grantors on the deed
- Impersonation of the true owners of the land by fraudulent persons
- Refusal of a potential purchaser to accept title based on the condition of the title
What’s Owner’s Title Insurance?
An Owner’s Title Policy is designed to protect you from covered title defects that existed prior to the issue date of your policy. If a valid claim is filed, your Owner’s Policy, subject to its terms and conditions, will cover the financial loss up to the face amount of your policy.
What’s Lender’s Title Insurance?
A Lender’s Policy provides no coverage to the homeowner. A Lender’s Policy insures that your lender has a valid, enforceable lien on your property. Most lenders require borrowers to purchase this type of insurance policy to protect their investments.
Lender Representation
Lender Representation
If you are a private lender looking to lend money to real estate investors, it is important to protect your rights with comprehensive loan contracts. While it might be tempting to use template contracts for your loan agreements, these contracts may be written to cover general needs and don’t always cover all the clauses and additional protections you might need. Banks and larger lenders may have teams of lawyers working for them to draft promissory notes, mortgages, and security agreements. Protect your rights as a private lender.
Our in-house attorneys represent private lenders through document-preparation services on their transactions. They carefully draft the necessary documents for the closing, review the title work, and represent the lender’s interests in the transaction. They’ve assisted thousands of private lenders with promissory notes, mortgages, security agreements, personal guaranty loans, loan agreements, subordination agreements, assignments of leases, rents, profits, UCC filings, and much more.
As the big-bank lending industry does, our investor clients pass the reasonable costs of attorney document-preparation services to the borrower at closing. If our client is able to select the title/closing agent, Capital Title can handle the entire closing and our in-house attorney can draft the lender documents.
If you are a private lender in need of representation, consider speaking to Capital Title Group. Have questions? We have answers. Contact Capital Title Group at 786-216-7881.
For sale by Owner Transactions
For sale by Owner Transactions
For sale-by-owner (FSBO) transactions are a financially-attractive option for homeowners seeking to maximize the profit they receive when they sell their property. Removing realtors from this transaction allows sellers to keep the money they would have spent on a real estate agent’s commission fee. Although realty companies throughout the area are lowering the rates associated with this fee, more and more homeowners are choosing to pursue an FSBO transaction.
If you are contemplating selling your house without a realtor’s assistance, it is critical that you do not jeopardize your long-term financial health for short-term gain. Real estate transactions are detailed, requiring a comprehensive understanding of contract law, Florida’s real estate statutes, and the transaction process itself.
When you retain our in-house attorney, we begin laying the foundation for a successful closing after a prospective buyer extends an offer. Our founding lawyer has decades of real estate experience that she leverages for you during contract negotiations, drafting, and revisions. She is eminently qualified to design purchase and sales contracts using easy-to-understand terms.
Before you close, we will help you prepare for this task by:
- Conducting title and lien searches
- Checking for liens, open permits, judgments or code enforcement violations
- Securing surveys, insurance or association approval if they are required
- After the title has been cleared, we will represent you during the closing, conducting last-minute checks to ensure that all necessary documents are accounted for and completed.
When you partner with us for your real estate legal and closing needs, you save money and minimize the hassles typically associated with an FSBO closing.
Foreign Investment in Real Property Tax Act (FIRPTA)
Foreign Investment in Real Property Tax Act (FIRPTA)
Any transaction where there is a “US Real Property Interest” (“USRPI”) being transferred by a foreign transferor requires special attention from both buyer and seller due to the requirements of the Foreign Investment in Real Property Tax Act (“FIRPTA”). FIRPTA is a highly complex area of US tax law, but most foreign buyers and sellers will recognize the acronym when there is a sale of US real property involving a foreign seller, which generally requires a 15% withholding of the entire sale price.
Failure to comply with these withholding requirements carries heavy penalties not only for the foreign seller but also for both the buyer and/or withholding agent. FIRPTA mandates that a buyer of US real estate involving a foreign seller withholds 15% of the entire purchase/ sale price and that such amount is remitted to the IRS within 20 days of closing. Thus, for example, if a foreign seller sells a property for $1mm, the buyer would be required to withhold $150k at closing and remit this amount to the IRS within 20 days.
It is important to note that the FIRPTA withholding is not a tax per se, rather it is a mechanism to ensure that any income tax that may be owed on the transfer of US real estate by a foreign seller is timely reported and paid. The act has several exceptions and actual taxes owed can be applied through a certificate of withholding prior to closing.
Capital Title Group is well versed in who is considered a foreign national under the FIRPTA definition as well as which transactions are exempt from taxes or which transactions qualify for a reduced withholding amount. If you need help navigating the complexities of FIRPTA transactions, give Capital Title Group a call today at 786-216-7881.
1031 Exchange
1031 Exchange
Capital Title Group has extensive experience working with Buyers and Sellers involved in 1031 exchange transactions. Although we are not tax advisors and we don’t serve as the Qualified Intermediary (“Exchanger”) as defined by the U.S. Tax Code, we do have the knowledge and experience to serve as the 1031 Exchange Closing Agent.
Whether you’re doing a Forward Exchange, Reverse Exchange, Improvement Exchange, or Swap and Drop, we have the knowledge and experience to guide you through the process. The most important aspect of a successful 1031 exchange is making sure all key rules are followed.
Investment Intent: Must be selling an investment property.
Time Frames: Replacement Property(ies) must be identified within 45 days of the sale and must be purchased within 180 days of the sale.
Identification: You can identify up to three Replacement Properties of any value during the Identification Period, or more, subject to certain conditions.
Like-Kind: The Replacement Property must be “Like-Kind” to the Relinquished Property
Common Ownership: The party selling the Relinquished Property must be the same party purchasing the Replacement Property.
Property Value: The property value of your purchase should match the value of the sale.
Exchange Value: you must use all of the proceeds of the sale or risk task implications.
Qualified Intermediary: To qualify for safe harbor tax deferral, sale proceeds must be held by a Qualified Intermediary between the sale of the Relinquished Property and the purchase of the Replacement Property.
If you have questions navigating the complexities of your 1031 exchange, give Capital Title Group a call today at 786-216-7881.
Commercial Closings
Commercial Closings
Closing on a commercial property is similar but distinctly different and far more complex than closing on your home. There are a number of additional requirements to consider, and a lawyer will likely need to be involved as well. Attorney-owned and operated, Capital Title Group knows Florida commercial real estate, and those with extensive involvement in the industry – lenders, Realtors, developers, investors, appraisers, surveyors, and inspectors – know us. They recognize the attention we give to every detail, every deal, and every client. They understand the critical role that quality title and closing services play in commercial and industrial transactions of all sizes and turn to us with confidence that we will get their deal closed – and closed right.
Our closing and title services for commercial and industrial properties include:
- Holding escrow in a trust account.
- Obtaining lien and title searches.
- Examining the property’s title.
- Preparing and issuing title insurance.
- Lien mitigation and resolution.
- Preparing tenant estoppels.
- Obtaining zoning letters.
- Handling mortgage, tax, and lien payoffs.
- Ordering and reviewing land surveys.
- Commercial lease review and analysis.
- Preparation/review of the closing statement.
- Drafting the conveyance documents.
- Conducting the closing.
- Title and closing services for commercial refinance.
- Assisting with ways to take title (including corporate formation).
- Preparing post-occupancy agreements/assignments of leases.
- Handling all disbursements after closing
Our Partner Companies
